Nguyen Hong Quan – Deputy Director of Hai Au Group (Photo courtesy of the group) Hanoi (VNA) - Price competition may be a good business strategy of some certain brands. For Hai Au Group, however, a sustainable business strategy is to concentrate on researching and enhancing the quality of products.
Price is considered one of the most significant factors influencing consumer shopping behavior, especially in emerging markets such as Vietnam. Most people understand that if they have a cost advantage (which means they can produce a product or a service at a lower cost than their competition), they are likely to improve their competitiveness and occupy the market share more easily.
However, instead of price, many brands choose improving the product quality to handle competition in business. Hai Au Group is a typical example in choosing product quality as a top priority. The reporter had a conversation with Nguyen Hong Quan – Deputy Director of Hai Au Group for more information about this business strategy.
The reporter: “Mr. Nguyen Hong Quan, in your opinion, how can the market be influenced if enterprises compete with each other on price?”
Mr. Nguyen Hong Quan: “In business, selling products at a price below the normal price to attract customers is called “dumping”. This is a common strategy of large enterprises when they want to “kill” their weaker competitors. A price war will only benefit the customers, but harm all the business stakeholders. Dumping strategy may help attract a number of customers immediately, but may destroy the market and brands. In the price war, brands have to sell their products at the lowest price. Consequently, some brands may have to worsen the product quality to ensure their minimum profit. Therefore, both customers and enterprises will be badly affected in the long run. I think that the dumping strategy is not a good one.”
The reporter: “So, how do enterprises compete with each other on, instead of price?”
Mr. Nguyen Hong Quan: “The simple way is to increase the product value. Instead of reducing the product cost, enterprises should add some other values to their products so that customers will feel they get their money's worth with those products.”
The reporter: “Could you take Hai Au Group as an example to explain your viewpoint?”
Mr. Nguyen Hong Quan: “Hai Au Group always listens to the customers, identify their needs, and apply ISO 9001:2015 to enhance the quality of our products. Hai Au ice cube machines now feature one more stunning and attractive appearance, more advanced functions and much better operation process, compared to earlier versions. Hai Au ice cube machines can help customers save up to 60% of their spending compared to buying ice cubes in the market. They can also save an extra 20-40% of electricity and water costs depending on every installation location. Ice cubes made by Hai Au ice cube machines are certified to clean and pure standards by the National Institute for Food Control-Ministry of Health, Pasteur Institute in Ho Chi Minh City, and Directorate for Standards, Metrology and Quality - Ministry of Science and Technology.
Besides, we are constantly upgrading both appearances and features of ice cream machine models. We have recently launched some Premium (P) fresh ice cream machines with luxurious looks and great durability. These machines can almost fix all technical errors in the operation process and meet all the strictest customer requirements.
Other products of Hai Au Group such as industrial rice cookers, hot water heaters, and flake ice machines have more advantages compared to those of some other brands in the market.”
The reporter: “What achievements has this business strategy brought to Hai Au Group?”
Mr. Nguyen Hong Quan: “Through our research, it can be seen that Vietnamese consumers are ready to pay a large amount of money for high-quality products. Therefore, our strategy for product quality has been highly supported by the customers. Products by Hai Au Group have received excellent evaluations from the public, which help sustain and strengthen our market position.
In addition to the product quality, Hai Au Group constantly improves customer care and warranty, product maintenance, and offers the best experiences to the customers. In recent years, Hai Au Group has continuously won many awards thanks to the customers’ trust and support.”
The reporter: “Thank you very much, Nguyen Hong Quan, and wish Hai Au Group countless brilliant success in the future!”./.
